MOSCOW, March 5 (Reuters) - Over 80 percent of the loans issued by Peresvet, the bank previously controlled by the Russian Orthodox Church, could be written off, the annual report of its new owner showed on Monday.
Russian Regional Development Bank (RRDB), owned by oil producer Rosneft, took over Peresvet last year via a bail in.
It said in its report that out of 165 billion roubles ($2.9 billion) in loans, 138 billion roubles worth could potentially not be repaid.
The Russian central bank provided RRDB with a 93 billion rouble loan at a favourable rate to be used to help rehabilitate Peresvet.
In addition, a number of large depositors funds were converted into Peresvet subordinated bonds.
The central bank declined to comment. RRDB and Rosneft did not reply to a Reuters request for immediate comment.
($1 = 57.1200 roubles)
Reporting by Tatiana Voronova; additional reporting by Olesya Astakhova; writing by Katya Golubkova; editing by Jason Neely